The European Commission may consider further regulation of the derivatives markets after admitting it still has concerns on key aspects of sweeping securities markets reforms agreed in January.

A statement from the Commission, seen by Financial News, lists three areas of the recently agreed Markets in Financial Instruments Directive II that it is not satisfied with.

It comes as representatives of member states met yesterday to sign off Mifid II, one of a number of final signs-off needed by European legislators following January’s political agreement.

The statement will not have a bearing on the rules, which are due to come in from late 2016, but the Commission does say that its concerns on transparency for derivatives markets may lead it to issue further regulation in this area.

The Commission said that it regrets that its initial proposals were not supported by the European Parliament and Council of the European Union, adding that it "will review this matter again in the near future against the objective of achieving effective and fair price formation…and make legislative proposals if appropriate”.

In its initial Mifid II proposal, the Commission allowed firms limited exemptions from publishing the prices at which they want to trade non-equity instruments. However, the final rules agreed by the Council and the Parliament in January enable a wider range of exemptions.

James Hughes, account director at Brussels-based lobby firm Cicero, said: "The European Commission is concerned that the current rules on derivatives market transparency will be viewed as weaker than other jurisdictions and in particular the US.”

He added: "This could cause major issues in the future as regulators around the world seek equivalence with other jurisdictions on OTC derivatives market reforms. Mifid II gives the Commission the ability to review transparency rules, which could well lead to separate rules on pre-trade transparency if EU rules are viewed as insufficient."

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The Commission also has concerns about the rules designed to foster competition among derivatives exchanges and clearing houses, the length of time that so-called “open access” requests can be delayed and the scope of work that needs to be carried out by the European Securities and Markets Authority.

The statement suggests that the work that needs to be done by Esma on the regulations goes beyond its limitations. In its role as the European securities market regulator, Esma is required to form the detail that underpins the high-level rules, known as “technical standards”.

According to the Commission, some of the standards Esma needs to form involve strategic decisions or policy choices, rather than technical work.

On derivatives market competition, the statement says that the ability for trading venues and clearing houses to postpone open access for 30 months “would further consolidate vested market interests”.

A spokeswoman for the Commission confirmed the contents of the statement.

-- write to apuaar@efinancialnews.com and follow on Twitter: @anishpuaar